Mizrahi Tefahot (MZTF) AI Stock Analysis

• Market Cap: $58.20B
• Dividend Yield: 4.05%
• Average Volume (3M): 409.64K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.21
• Revenue Growth: 11.00%
• EPS Growth: 6.03%
• Country: IL
• Employees: 7,211
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 568.00
• Shares Outstanding: 259,952,850
• 10 Day Avg. Volume: 420,187
• 30 Day Avg. Volume: 409,640
• PEG Ratio: 0.69
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 2.96
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 3.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: 26,232.00 ▲(9.53% Upside)

Mizrahi Tefahot Bank's strong financial performance and attractive valuation are the primary drivers of its high score. The positive technical indicators support the stock's upward momentum, although caution is advised due to overbought signals. The earnings call further reinforces confidence with strong credit growth and strategic alignment.

Positive Factors

Revenue Growth

Sustained revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and profitability.

Credit Growth

Strong credit growth reflects robust demand and effective lending strategies, which can enhance revenue streams and market position over time.

Cost Efficiency

Maintaining a low cost-income ratio demonstrates operational efficiency, allowing for better profitability and competitive pricing.

Negative Factors

Decline in Cash Flow Growth

A decline in cash flow growth can limit investment capacity and flexibility, potentially impacting future expansion and financial stability.

Impact of Extra Tax

Extra taxation can reduce net income and shareholder returns, challenging the bank's ability to reinvest in growth and maintain competitive dividends.

Client Relief Impact

Client relief measures can strain financial resources and reduce profitability, impacting the bank's ability to sustain growth and operational efficiency.

Mizrahi Tefahot Business Overview & Revenue Model

Company Description

Mizrahi Tefahot Bank Ltd., together with its subsidiaries, provides a range of international, commercial, domestic, and personal banking services to individuals and businesses in Israel, Switzerland, and internationally. It operates through six segments: Household, Small Business, Private Banking, Commercial Banking, Business Banking, and Financial Management. The company offers checking, savings, and deposits accounts; and loans, such as instant, home renovation, auto, all-purpose, student, and business; mortgages; and credit cards. It also provides foreign trade services, including import, export, and documentary credit; bank guarantees; transactions in foreign currency, which include trading in derivative instruments, factoring services, and investments in deposits and securities; financing of real estate and construction projects; mergers and acquisitions services; and private and online banking services. In addition, the company offers capital market services, including consultancy for capital market activities, distribution of mutual funds, management of securities portfolios for clients, pension advisory service, trust services, provision of registration services; operates provident funds, mutual funds, and insurance incidental to mortgages; and participates in syndication transactions, as well as engages in credit operations. As of December 31, 2021, it operated through a network of 225 branches and business centers, including 52 Bank Yahav branches and 29 Union Bank branches in Israel; and two bank affiliates. The company was formerly known as United Mizrahi Bank Limited and changed its name to Mizrahi Tefahot Bank Ltd. in November 2005. The company was incorporated in 1923 and is headquartered in Ramat Gan, Israel.

How the Company Makes Money

Mizrahi Tefahot generates revenue through various channels including interest income from loans, fees from banking services, and commissions from investment products. The bank earns a significant portion of its income from mortgage lending, which is a core focus area, providing home loans to consumers. Additionally, MZTF benefits from fee-based income through services such as account maintenance, financial advisory, and wealth management. The bank also engages in strategic partnerships with fintech companies to enhance its digital offerings, thereby attracting more clients and increasing transaction volumes, which contribute to its earnings.

Mizrahi Tefahot Financial Statement Overview

Summary

Mizrahi Tefahot exhibits solid overall financial health with strong revenue and profit growth, a robust balance sheet free from debt, and excellent cash flow generation. The company's financial structure is stable with low leverage, and it demonstrates effective profitability and cash management. These strengths position the bank well for sustained performance and potential future growth.

Income Statement

Mizrahi Tefahot has demonstrated strong revenue growth with a 10.14% increase from 2023 to 2024. The net profit margin improved to 37.18% in 2024 from 36.85% in 2023, indicating effective cost management and profitability. The gross profit margin remains robust at 100%, as typical for banks. The EBIT margin also shows substantial strength at 64.76%, reflecting efficient operations.

Balance Sheet

The company's balance sheet is strong, with a debt-free position in 2024, indicating excellent management of funds. Return on Equity (ROE) improved to 17.43% in 2024 from 17.88% in 2023, showcasing profitability relative to shareholder equity. The equity ratio increased to 6.44%, reflecting a stable financial structure. These metrics suggest financial stability and low leverage risk.

Cash Flow

Operating cash flow increased significantly in 2024, indicating strong cash generation capacity. Free cash flow also saw a remarkable growth of 345.13% from 2023 to 2024, suggesting efficient capital expenditure management. The operating cash flow to net income ratio stands at 2.64, highlighting strong cash conversion from profits. The company shows robust cash management, despite large fluctuations in investing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.13B	28.65B	26.77B	19.20B	13.12B	9.56B
Gross Profit	14.57B	14.67B	14.74B	13.24B	10.25B	7.85B
EBITDA	9.24B	9.27B	8.16B	7.29B	5.37B	2.89B
Net Income	5.47B	5.46B	4.91B	4.47B	3.19B	1.61B
Balance Sheet
Total Assets	517.29B	485.64B	448.20B	428.29B	392.27B	360.14B
Cash, Cash Equivalents and Short-Term Investments	78.89B	82.64B	85.96B	93.67B	95.27B	86.57B
Total Debt	36.33B	40.18B	37.81B	34.07B	38.66B	34.08B
Total Liabilities	482.64B	452.91B	419.50B	403.42B	370.54B	340.47B
Stockholders Equity	33.11B	31.29B	27.46B	23.78B	20.77B	18.80B
Cash Flow
Free Cash Flow	26.26B	13.77B	3.09B	3.51B	3.79B	4.78B
Operating Cash Flow	26.84B	14.38B	3.53B	3.90B	4.13B	5.06B
Investing Cash Flow	-62.77B	-43.35B	-20.46B	-34.40B	-25.12B	-4.29B
Financing Cash Flow	29.83B	25.08B	9.84B	28.24B	30.24B	35.53B

Mizrahi Tefahot Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23950.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MZTF, the sentiment is Positive. The current price of 23950 is above the 20-day moving average (MA) of 23036.19, above the 50-day MA of 21936.65, and above the 200-day MA of 19716.14, indicating a bullish trend. The MACD of 523.53 indicates Negative momentum. The RSI at 68.10 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MZTF.

Mizrahi Tefahot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMI	80 Outperform	$100.10B	10.37	15.67%	3.55%	6.95%	12.41%
MZTF	80 Outperform	$58.20B	10.49	16.87%	4.05%	11.00%	6.03%
POLI	80 Outperform	$91.40B	9.95	15.13%	3.44%	19.05%	18.98%
FIBI	79 Outperform	26.19B	11.28	16.48%	4.56%	14.16%	1.05%
DSCT	79 Outperform	$40.60B	9.45	13.10%	3.68%	14.48%	4.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%